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Shtirlitz [24]
3 years ago
15

A relatively steep demand curve indicates that a. quantity demanded will not adjust to a price change. b. quantity demanded will

adjust only slightly to a price change. c. quantity demanded will adjust significantly to a price change. d. the change in quantity demanded will exactly equal a change in price.
Business
1 answer:
Scilla [17]3 years ago
8 0

Answer:

The correct answer is option b.

Explanation:

A steep demand curve implies that the demand is relatively inelastic. In other words, a significant change in price will cause a small change in the quantity demanded.  

A flatter demand curve, on the contrary, implies that a small change in price will cause a greater change in quantity demanded. In other words, demand is relatively elastic.  

A change in price will not cause demand to change if the elasticity of demand is perfectly inelastic or when the demand curve is a vertical line.

A change in demand will be equal to the change in price if demand is unitary elastic.

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In the example, <em>as the price of coal increased so will the quantity supplied</em>. <em>If there is to be more supply the output should be higher which is likely to be interpreted in a need for more employees</em>.

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